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Thoughts

Gemserv welcomes a £530m Funding Boost for Heat Networks

19th Dec, 2023

Gemserv is thrilled to see a significant £530 million funding boost for heat networks as part of the UK Government’s £6 billion major capital funding announcement allocation for energy efficiency schemes.

This capital injection, spanning three years up to March 2028, includes a substantial £485 million for the Green Heat Network Fund (GHNF), and £45 million for the Heat Network Efficiency Scheme (HNES). As a key player in the delivery of these crucial initiatives, Gemserv is proud to be actively involved in driving positive change in the landscape of low carbon heat networks – a journey that began back in 2019 with our involvement in the Heat Networks Investment Project (HNIP).

David Hiller, HNES Programme Director enthusiastically commented:

As the appointed Delivery Partner for the Heat Network Efficiency Scheme (HNES) and a key part of the Delivery Team for the Green Heat Network Fund (GHNF), we are really pleased to witness the increased funding for these two very important schemes. Our involvement reflects our commitment at Gemserv to contributing to the UK’s low carbon future.

A £45 Million Boost for the Heat Network Efficiency Scheme  

As a testament to the popularity and high levels of interest in the Heat Network Efficiency Scheme (HNES), Gemserv is delighted to hear news from the Government that the scheme has been allocated an additional £45 million.

Gemserv was appointed delivery partner for the HNES in November 2022 by the Department for Energy Security and Net Zero and the scheme opened to applicants at the beginning of 2023. Supported by Turner and Townsend, Ramboll and Lux Nova, HNES has since provided over £15.5 million of capital funding to 30 projects, and an additional £1.5 million to 76 revenue projects in England and Wales across Rounds 1 and 2. We are also excited to be announcing further award funding for Rounds 3 and 4 in the new year.

HNES is key to delivering a just transition to Net Zero, and we’re delighted that the scheme will continue up until 2028.

We are currently in the process of updating scheme guidance and application forms, with Round 6 now scheduled to close later than originally planned on 22nd March 2024. This is to allow applicants sufficient time to review revised guidance and prepare high quality applications. Prospective applicants are encouraged to continue developing their projects while awaiting the updated guidance and application forms. If you are concerned about any of these updates or have any questions, please contact Gemserv at: hnes@gemserv.com

A Track Record in Supporting Heat Networks  

Gemserv also supports on the delivery of other aspects of the Heat Network Transformation Programme, forming a key part of the Delivery Team for the Green Heat Networks Fund and leading on stakeholder engagement and application management. We are also working with DESNZ on the design of the Heat Network Technical Assurance Scheme with our partners FairHeat.

Having previously worked on delivering the Heat Network Investment Project (HNIP), our team has a long history supporting the Government’s goals to grow the heat networks market in the UK. We’re elated that this journey is set to continue.

As the Government demonstrates its commitment to advancing green heat networks and energy efficiency, Gemserv is excited to be an integral part of the transition towards a sustainable, low carbon future. We look forward to welcoming more heat network projects through the door.

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